TEXAS PERSONAL AUTO POLICY

TEXAS PERSONAL AUTO POLICY

1130 E. Arapaho Rd., Suite 435 • Richardson, Texas 75081

P.O. Box 852470 • Richardson, Texas 75085

Ed. 2/03 (Rev. 01/14)

YOUR TEXAS PERSONAL AUTO POLICY – QUICK REFERENCEDECLARATIONS PAGE

Name of Insurance CompanyYour Name and AddressYour Auto or TrailerPolicy PeriodCoverage and Amounts of Insurance

BeginningOn Page

AGREEMENT . . . . . . . . . . . . . . . . . . . . . .3DEFINITIONS . . . . . . . . . . . . . . . . . . . . . .3

PART A Liability Coverage . . . . . . . . . . . . . . . . . . .3Insuring AgreementSupplementary PaymentsExclusionsLimit of LiabilityOut of State CoverageFinancial Responsibility RequiredOther Insurance

PART B1 Medical Payments Coverage . . . . . . . . . .5Insuring AgreementExclusionsLimit of LiabilityOther InsuranceAssignment of Benefits

PART B2 Personal Injury Protection Coverage . . . .6Insuring AgreementExclusionsLimit of LiabilityOther InsuranceOther ProvisionsAssignment of Benefits

PART C Uninsured/Underinsured MotoristsCoverage . . . . . . . . . . . . . . . . . . . . . .7Insuring AgreementExclusionsLimit of LiabilityOther Insurance

BeginningOn Page

PART D Coverage for Damage to Your Auto . . . . .9Insuring AgreementTransportation ExpensesExclusionsLimit of LiabilityPayment of LossNo Benefit to BaileeOther InsuranceAppraisal

PART E Duties After an Accident or Loss . . . . . .10General DutiesAdditional Duties for

Uninsured/UnderinsuredMotorists Coverage

Additional Duties for Coverage for Damage to Your Auto

PART F General Provisions . . . . . . . . . . . . . . . . .11BankruptcyChangesLegal Action Against UsOur Right to Recover PaymentPolicy Period and TerritoryTerminationTransfer of Your Interest in this PolicyTwo or More Auto Policies

Managing General Agent for:Old American County Mutual Fire Insurance Company

Dallas, Texas(A County Mutual Company)

2013

IMPORTANT NOTICETo obtain information or make a complaint:

You may contact your managing general agentLone Star Managing General Agency at the fol-lowing toll-free number:

1-877-428-8466You may call Old American County Mutual FireInsurance Co.’s toll-free telephone number forinformation or to make a complaint at

1-866-233-7091You may contact the Texas Department ofInsurance to obtain information on companies,coverages, rights or complaints at:

1-800-252-3439You may write the Texas Department of Insurance:

P.O. Box 149104Austin, TX 78714-9104Fax: (512) 475-1771Web: http://www.tdi.texas.govE-mail: [email protected]

PREMIUM OR CLAIM DISPUTES:Should you have a dispute concerning your premiumor about a claim you should contact the agent orthe company first. If the dispute is not resolved,you may contact the Texas Department ofInsurance.

ATTACH THIS NOTICE TO YOUR POLICY:This notice is for information only and does not become a part or condition of the attacheddocument.

AVISO IMPORTANTEPara obtener informacion o para someter unaqueja:

Puede comunicarse con su agente general deLone Star Managing General Agency alsiguente numero de telefono gratis

1-877-428-8466Usted puede llamar al numero de telefono gratisde Old American County Mutual Fire InsuranceCo. para informacion o para someter una queja al

1-866-233-7091Puede comunicarse con el Departamento deSeguros de Texas para obtener informacion ac-erca de companias, coberturas, derechos o quejasal:

1-800-252-3439Puede escribir al Departamento de Seguros deTexas:

P.O. Box 149104Austin, TX 78714-9104Fax: (512) 475-1771Web: http://www.tdi.texas.govE-mail: [email protected]

D I S P U TA S S O B R E P R I M A S ORECLAMOS:Si tiene una disputa concerniente a su prima o aun reclamo, debe comunicarse con el agente o lacompania primero. Si no se resuelve la disputa,puede entonces comunicarse con el departamento(TDI).

UNA ESTE AVISO A SU POLIZA:Este aviso es solo para proposito de informacion y no se convierte en parte o condicion del documento adjunto.

TEXAS PERSONAL AUTO POLICYAGREEMENT

In return for payment of the premium and subject to all the terms of this policy we agree with you as follows:DEFINITIONS

A. Throughout this policy, “you” and “your” refer to:1. The “named insured” shown in the Declarations, and2. The spouse if a resident of the same household.

B. “We”, “us” and “our” refer to the company providing this insurance.C. For purposes of this policy, a private passenger type auto or pickup or van shall be deemed to be owned by

a person if leased:1. Under a written agreement to that person; and2. For a continuous period of at least six months.

Other words and phrases are defined. They are boldfaced when used.D. “Family member” means a person who is a resident of your household and related to you by blood,

marriage or adoption. This definition includes a ward or foster child who is a resident of your household, andalso includes your spouse even when not a resident of your household during a period of separation in con-templation of divorce.

E. “Occupying” means in, upon, getting in, on, out or off.F. “Trailer” means a vehicle designed to be pulled by a:

1. Private passenger auto; or2. Pickup or van.It also means a farm wagon or farm implement while towed by a vehicle listed in F.1. or F.2. above.

G. “Your covered auto” means:1. Any vehicle shown in the Declarations;2. I. Any of the following types of vehicles on the date you became the owner:

a. a private passenger auto; orb. a utility type vehicle, with a G.V.W. of 25,000 lbs. or less, of the pickup body, sedan delivery,

panel truck, van type and multi-use type, not used for the delivery or transportation of goods,materials or supplies other than samples; unless, (1) the delivery of goods, materials or suppliesis not the primary usage of the vehicle, or (2) used for farming or ranching.

II. This provision (G.2) applies only if you:a. acquire the vehicle during the policy period; andb. notify us within 30 days after you become the owner.If the vehicle you acquire replaces one shown in the Declarations, it will have the same coverageas the vehicle it replaced. You must notify us of a replacement vehicle within 30 days only if you wishto add or continue Coverage for Damage to Your Auto.If the vehicle you acquire is in addition to any shown in the Declarations, it will have the broadestcoverage we now provide for any vehicle shown in the Declarations.

3. Any trailer you own.4. Any auto or trailer you do not own while used as a temporary substitute for any other vehicle described

in this definition which is out of normal use because of itsa. breakdown;b. repair;c. servicing;d. loss; ore. destruction.

H. “Business day” means a day other than a Saturday, Sunday or holiday recognized by the state of Texas.PART A – LIABILITY COVERAGEINSURING A. We will pay damages for bodily injury or property damage for which any covered personAGREEMENT becomes legally responsible because of an auto accident. Property damage includes loss of use of the dam-

aged property. Damages include prejudgment interest awarded against the covered person. We will settleor defend, as we consider appropriate, any claim or suit asking for these damages. In addition to our limit ofliability, we will pay all defense costs we incur. Our duty to settle or defend ends when our limit of liability forthis coverage has been exhausted.

B. “Covered person” as used in this Part means:1. You or any family member for the ownership, maintenance or use of any auto or trailer.2. Any person using your covered auto.3. For your covered auto, any person or organization but only with respect to legal responsibility for acts

or omissions of a person for whom coverage is afforded under this Part.4. For any auto or trailer, other than your covered auto, any person or organization but only with respect

to legal responsibility for acts or omissions of you or any family member for whom coverage is affordedunder this Part. This provision (B.4.) applies only if the person or organization does not own or hire the auto or trailer.

SUPPLE- In addition to our limit of liability, we will pay on behalf of a covered person:MENTARY 1. Up to $250 for the cost of bail bonds required because of an accident including related traffic law PAYMENTS violations. The accident must result in bodily injury or property damage covered under this policy.

2. Premiums on appeal bonds and bonds to release attachments in any suit we defend.3. Interest accruing after a judgment is entered in any suit we defend. Our duty to pay interest ends when

we offer to pay that part of the judgment which does not exceed our limit of liability for this coverage. 4. Up to $50 a day for loss of earnings, but not other income, because of attendance at hearings or trials

at our request.5. Other reasonable expenses incurred at our request.

EXCLUSIONS A. We do not provide Liability Coverage for any person:1. Who intentionally causes bodily injury or property damage;2. For damage to property owned or being transported by that person;3. I. For damage to property:

a. rented to;b. used by; or c. in the care of;that person.

II. This exclusion (A.3.I.) does not apply to damage to:a. a residence or private garage; orb. any of the following type vehicles not owned by or furnished or available for the regular use of you

or any family member:(1) private passenger autos;(2) trailers; or(3) pickups or vans.

However, the exclusion 3.I. does apply to a loss due to or as a consequence of a seizure of an autolisted in 3.II.b. by a federal or state law enforcement officers as evidence in a case against you underthe Texas Controlled Substances Act or the federal Controlled Substances Act if you are convicted insuch case.

4. For bodily injury to an employee of that person during the course of employment. This exclusion (A.4.)does not apply to bodily injury to a domestic employee unless workers’ compensation benefits are required or available for that domestic employee.

5. For that person’s liability arising out of the ownership or operation of a vehicle while it is; a. being used to carry persons for a fee; this does not apply to a share-the-expense car pool.b. being used to carry property for a fee; this does not apply to you or any family member unless the

primary usage of the vehicle is to carry property for a fee; orc. rented or leased to another; this does not apply if you or any family member lends your covered

auto to another for reimbursement of operating expenses only.6. While employed or otherwise engaged in the business or occupation of:

a. selling;b. repairing;c. servicing;d. storing; ore. parking;vehicles designed for use mainly on public highways. This includes road testing and delivery. This exclu-sion (A.6.) does not apply to the ownership, maintenance or use of your covered auto by:

1. you;2. any family member; or3. any partner, agent or employee of you or any family member.

7. Maintaining or using any vehicle while that person is employed or otherwise engaged in any business oroccupation not described in Exclusion A.6. This exclusion (A.7.) does not apply to the maintenance oruse of a:a. private passenger auto;b. pickup or van that is your covered auto; orc. trailer used with a vehicle described in 7.a. or 7.b. above.

8. Using a vehicle without a reasonable belief that that person is entitled to do so.This exclusion (8.) does not apply to you or any family member while using your covered auto.9. I. For bodily injury or property damage for which that person:

a. is an insured under a nuclear energy liability policy; orb. would be an insured under a nuclear energy liability policy but for its termination upon exhaus-

tion of its limit of liability.II. A nuclear energy liability policy is a policy issued by any of the following or their successors:

a. American Nuclear Insurers;b. Mutual Atomic Energy Liability Underwriters; orc. Nuclear Insurance Association of Canada.

B. We do not provide Liability Coverage for the ownership, maintenance or use of:

1. Any motorized vehicle having fewer than four wheels;2. Any vehicle, other than your covered auto, which is:

a. owned by you; orb. furnished or available for your regular use.

3. I. Any vehicle, other than your covered auto, which is:a. owned by any family member; orb. furnished or available for the regular use of any family member.

II. However, this exclusion (B.3.) does not apply to your maintenance or use of any vehicle which is: a. owned by a family member; orb. furnished or available for the regular use of a family member.

C. We do not provide Liability Coverage for you or any family member for bodily injury to you or any familymember, except to the extent of the minimum limits of Liability Coverage required by Texas Civil Statutes,Article 6701h, entitled “Texas Motor Vehicle Safety - Responsibility Act.”

LIMIT OF A. If separate limits of liability for bodily injury and property damage liability are shown in the DeclarationsLIABILITY for this coverage the limit of liability for “each person” for bodily injury liability is our maximum limit of

liability for all damages for bodily injury sustained by any one person in any one auto accident. Subject tothis limit for “each person”, the limit of liability shown in the Declarations for “each accident” for bodily injuryliability is our maximum limit of liability for all damages for bodily injury resulting from any one auto accident.The limit of liability shown in the Declarations for “each accident” for property damage liability is our maxi-mum limit of liability for all damages to all property resulting from any one auto accident.If the limit of liability shown in the Declarations for this coverage is for combined bodily injury and property dam-age liability, it is our maximum limit of liability for all damages resulting from any one auto accident.This is the most we will pay regardless of the number of:1. Covered persons;2. Claims made;3. Vehicles or premiums shown in the Declarations; or4. Vehicles involved in the auto accident.We will apply the limit of liability to provide any separate limits required by law for bodily injury and propertydamage liability. However, this provision will not change our total limit of liability.

B. Any payment under the Uninsured/Underinsured Motorists Coverage or the Personal Injury Protection Coverage of this policy to or for a covered person will reduce any amount that person is entitled to recoverunder this coverage.

OUT OF STATE If an auto accident to which this policy applies occurs in any state or province other than the one in whichCOVERAGE your covered auto is principally garaged, we will interpret your policy for that accident as follows:

A. If the state or province has:1. A financial responsibility or similar law specifying limits of liability for bodily injury or property damage

higher than the limit shown in the Declarations, your policy will provide the higher specified limit.2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the non-

resident uses a vehicle in that state or province, your policy will provide at least the required minimumamounts and types of coverage.

B. No one will be entitled to duplicate payments for the same elements of loss.FINANCIAL When this policy is certified as future proof of financial responsibility, this policy shall comply with the lawRESPONSI- to the extent required.BILITYREQUIREDOTHER If there is other applicable liability insurance we will pay only our share of the loss. Our share is the proportionINSURANCE that our limit of liability bears to the total of all applicable limits.

However, any liability insurance we provide to a covered person for the maintenance or use of a vehicle you do not own shall be excess over any other applicable liability insurance.

PART B1 – MEDICAL PAYMENTS COVERAGEINSURING A. We will pay reasonable expenses incurred for necessary medical and funeral services because of bodilyAGREEMENT injury:

1. Caused by accident; and2. Sustained by a covered person.We will pay only those expenses incurred within three years from the date of the accident.

B. “Covered person” as used in this Part means:1. You or any family member:

a. while occupying; orb. when struck by;a motor vehicle designed for use mainly on public roads or a trailer of any type.

2. Any other person while occupying your covered auto.EXCLUSIONS We do not provide Medical Payments Coverage for any person for bodily injury:

1. Sustained while occupying any motorized vehicle having fewer than four wheels.

2. Sustained while occupying your covered auto when it is:a. being used to carry persons for a fee; this does not apply to a share-the-expense car pool; orb. being used to carry property for a fee; this does not apply to you or any family member unless the


auto to another for reimbursement of operating expenses only.3. Sustained while occupying any vehicle located for use as a residence or premises.4. Occurring during the course of employment if workers’ compensation benefits are required or available

for the bodily injury.5. Sustained while occupying or, when struck by, any vehicle (other than your covered auto) which is:

a. owned by you; orb. furnished or available for your regular use.

6. Sustained while occupying or, when struck by, any vehicle (other than your covered auto) which is:a. owned by any family member; orb. furnished or available for the regular use of any family member.However, this exclusion (6.) does not apply to you.

7. Sustained while occupying a vehicle without a reasonable belief that person is entitled to do so. Thisexclusion (7.) does not apply to you or any family member while using your covered auto.

8. Sustained while occupying a vehicle when it is being used in the business or occupation of a coveredperson. This exclusion (8.) does not apply to bodily injury sustained while occupying a:a. private passenger auto;b. pickup or van that you own; orc. trailer used with a vehicle described in (8.a. or 8.b.) above.

9. Caused by or as a consequence of:a. discharge of a nuclear weapon (even if accidental);b. war (declared or undeclared);c. civil war;d. insurrection; ore. rebellion or revolution.

10. From or as a consequence of the following whether controlled or uncontrolled or however caused:a. nuclear reaction;b. radiation; orc. radioactive contamination.

LIMIT OF A. The limit of liability shown in the Declarations for this coverage is our maximum limit of liability for eachLIABILITY person injured in any one accident. This is the most we pay regardless of the number of:

1. Covered persons;2. Claims made;3. Vehicles or premiums shown in the Declarations; or4. Vehicles involved in the accident.

B. Any amounts otherwise payable for expenses under this coverage shall be reduced by any amounts paid orpayable for the same expenses under any Auto Liability or Uninsured/Underinsured Motorists Coverage pro-vided by this policy.

C. No payment will be made unless the injured person or that person’s legal representative agrees in writingthat any payment shall be applied toward any settlement or judgment that person receives under any AutoLiability or Uninsured/Underinsured Motorists Coverage provided by this policy.

OTHER If there is other applicable auto medical payments insurance we will pay only our share of the loss. OurINSURANCE share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance

we provide with respect to a vehicle you do not own shall be excess over any other collectible auto insurance providing payments for medical or funeral expenses.

ASSIGNMENT Payments for medical expenses will be paid directly to a physician or other health care provider if we OF BENEFITS receive a written assignment signed by the covered person to whom such benefits are payable.PART B2 – PERSONAL INJURY PROTECTION COVERAGEINSURING A. We will pay Personal Injury Protection benefits because of bodily injury:AGREEMENT 1. resulting from a motor vehicle accident; and

2. sustained by a covered person.Our payment will only be for losses or expenses incurred within three years from the date of accident.B. Personal Injury Protection benefits consist of:

1. Reasonable expenses incurred for necessary medical and funeral services.2. I. Eighty percent of a covered person’s loss of income from employment. These benefits apply only if,

at the time of the accident, the covered persona. was an income producer; andb. was in an occupational status.These benefits do not apply to any loss after the covered person dies.

II. Loss of income is the difference between

a. income which would have been earned had the covered person not been injured; andb. the amount of income actually received from employment during the disability.

III. If the income being earned as of the date of accident is a salary or fixed remuneration, it shall be usedin determining the amount of income which would have been earned. Otherwise, the average monthlyincome earned during the period (not more than 12 months) preceding the accident shall be used.

3. I. Reasonable expenses incurred for obtaining services. These services must replace those a cov-ered person would normally have performed:a. without pay;b. during a period of disability; andc. for the care and maintenance of the family or household.

II. These benefits apply only if, at the time of the accident, the covered person:a. was not an income producer; andb. was not in an occupational status.The benefits do not apply to any loss after the covered person dies.

C. “Covered person” as used in this Part means:1. You or any family member:

a. while occupying; orb. when struck by;a motor vehicle designed for use mainly on public roads or a trailer of any type.

2. Any other person while occupying your covered auto with your permission.EXCLUSIONS We do not provide Personal Injury Protection Coverage for any person for bodily injury sustained:

1. In an accident caused intentionally by that person.2. By that person while in the commission of a felony.3. By that person while attempting to elude arrest by a law enforcement official.4. While occupying, or when struck by, any motor vehicle (other than your covered auto) which is owned

by you.5. By a family member while occupying, or when struck by any motor vehicle (other than your covered

auto) which is owned by a family member.LIMIT OF The limit of liability shown in the Declarations for this coverage is our maximum limit of liability for eachLIABILITY person injured in any one accident. This is the most we will pay regardless of the number of:

1. Covered persons;2. Claims made;3. Vehicles or premiums shown in the Declarations; or4. Vehicles involved in the accident.

OTHER If there is other Personal Injury Protection Insurance, we will pay only our share. Our share is the propor-INSURANCE tion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide

with respect to a vehicle you do not own shall be excess over any other collectible Personal Injury Protec-tion insurance.

OTHER A. Loss Payments. Benefits are payable:PROVISIONS 1. Not more frequently than every two weeks; and

2. Within 30 days after satisfactory proof of claim is received.B. Modification. The General Provision part of this policy entitled “Our Right To Recover Payment” does not

apply to this coverage.ASSIGNMENT Payments for medical expenses will be paid directly to a physician or other health care provider if we OF BENEFITS receive a written assignment signed by the covered person to whom such benefits are payable.PART C – UNINSURED/UNDERINSURED MOTORISTS COVERAGEINSURING A. We will pay damages which a covered person is legally entitled to recover from the owner or operatorAGREEMENT of an uninsured motor vehicle because of bodily injury sustained by a covered person, or property

damage, caused by an accident.The owner’s or operator’s liability for these damages must arise out of the ownership, maintenance or useof the uninsured motor vehicle.Any judgment for damages arising out of a suit brought without our consent is not binding on us. If we andyou do not agree as to whether or not a vehicle is actually uninsured, the burden of proof as to that issueshall be on us.

B. “Covered person” as used in this Part means:1. You or any family member;2. Any other person occupying your covered auto;3. Any person for damages that person is entitled to recover because of bodily injury to which this cover-

age applies sustained by a person described in B.1. or B.2. above.C. “Property damage” as used in this Part means injury to, destruction of or loss of use of:

1. Your covered auto, not including a temporary substitute auto.2. Any property owned by a person listed in B.1. or B.2. of covered person while contained in your

covered auto.

3. Any property owned by you or any family member while contained in any auto not owned, but beingoperated, by you or any family member.

D. I. “Uninsured motor vehicle” means a land motor vehicle or trailer of any type,1. To which no liability bond or policy applies at the time of the accident,2. Which is a hit and run vehicle whose operator or owner cannot be identified and which hits:

a. you or any family member;b. a vehicle which you or any family member are occupying; orc. your covered auto.

3. To which a liability bond or policy applies at the time of the accident but the bonding or insuring company:a. denies coverage; orb. is or becomes insolvent.

4. Which is an underinsured motor vehicle. An underinsured motor vehicle is one to which a liabilitybond or policy applies at the time of the accident but its limit of liability either:a. is not enough to pay the full amount the covered person is legally entitled to recover as dam-

ages; orb. has been reduced by payment of claims to an amount which is not enough to pay the full amount

the covered person is legally entitled to recover as damages.II. However, “uninsured motor vehicle” does not include any vehicle or equipment:

1. Owned by or furnished or available for the regular use of you or any family member.2. Owned or operated by a self-insurer under any applicable motor vehicle law.3. Owned by any governmental body unless:

a. the operator of the vehicle is uninsured; andb. there is no statute imposing liability for damage because of bodily injury or property damage

on the governmental body for an amount not less than the limit of liability for this coverage.4. Operated on rails or crawler treads.5. Designed mainly for use off public roads while not on public roads.6. While located for use as a residence or premises.

EXCLUSIONS A. We do not provide Uninsured/Underinsured Motorists Coverage for any person:1. For bodily injury sustained while occupying, or when struck by, any motor vehicle or trailer of any type

owned by you or any family member which is not insured for this coverage under this policy.2. If that person or the legal representative settles the claim without our written consent.3. When your covered auto is:

a. being used to carry persons for a fee; this does not apply to a share-the-expense car pool; orb. being used to carry property for a fee; this does not apply to you or any family member unless the


auto to another for reimbursement of operating expenses only.4. For the first $250 of the amount of damage to the property of that person as the result of any one accident.5. Using a vehicle without a reasonable belief that the person is entitled to do so. This exclusion (A.5.) does

not apply to you or any family member while using your covered auto.6. For bodily injury or property damage resulting from the intentional acts of that person.

B. This coverage shall not apply directly or indirectly to benefit:1. Any insurer or self-insurer under any workers’ compensation, disability benefits or similar law;2. Any insurer of property.

LIMIT OF A. I. If separate limits of liability for bodily injury and property damage liability are shown in the Declara-LIABILITY tions for this coverage the limit of liability for “each person” for bodily injury liability is our maximum limit

of liability for all damages for bodily injury sustained by any one person in any one motor vehicle accident.Subject to this limit for “each person”, the limit of liability shown in the Declarations for “each accident” forbodily injury liability is our maximum limit of liability for all damages for bodily injury resulting from any onemotor vehicle accident. The limit of liability shown in the Declarations for “each accident” for propertydamage liability is our maximum limit of liability for all damages to all property resulting from any onemotor vehicle accident.If the limit of liability shown in the Declarations for this coverage is for combined bodily injury and prop-erty damage liability, it is our maximum limit of liability for all damages resulting from any one motorvehicle accident.This is the most we will pay regardless of the number of:a. Covered persons;b. Claims made;c. Policies or bonds applicable;d. Vehicles or premiums shown in the Declarations; or e. Vehicles involved in the accident.

II. Subject to this maximum, our limit of liability will be the lesser of:a. The difference between the amount of a covered person’s damages for bodily injury or property

damage and the amount paid or payable to that covered person for such damages, by or on behalf

of persons or organizations who may be legally responsible; andb. The applicable limit of liability for this coverage.

B. In order to avoid insurance benefits payments in excess of actual damages sustained, subject only to thelimits set out in the Declarations and other applicable provisions of this coverage, we will pay all covereddamages not paid or payable under any workers’ compensation law, disability benefits law, any similar law,auto medical expense coverage or Personal Injury Protection Coverage.

C. Any payment under this coverage to or for a covered person will reduce any amount that person is entitledto recover for the same damages under the Liability Coverage of this policy.

OTHER A. If there is other applicable similar insurance we will pay only our share of the loss. Our share is the INSURANCE proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide

with respect to a vehicle you do not own shall be excess over any other collectible insurance.B. For any property damage to which the Coverage for Damage to Your Auto of this policy (or similar cover-

age from another policy) and this coverage both apply, you may choose the coverage from which damageswill be paid. You may recover under both coverages, but only if:1. Neither one by itself is sufficient to cover the loss;2. You pay the higher deductible amount (but you do not have to pay both deductibles); and3. You will not recover more than the actual damages.

PART D – COVERAGE FOR DAMAGE TO YOUR AUTOINSURING A. We will pay for direct and accidental loss to your covered auto, including its equipment less anyAGREEMENT applicable deductible shown in the Declarations. However, we will pay for loss caused by collision only

if the Declarations indicate that Collision Coverage is provided.B. “Collision” means the upset, or collision with another object of your covered auto. However, loss caused

by the following are not considered “collision”:1. Missiles or falling objects; 6. Hail, water or flood;2. Fire; 7. Malicious mischief or vandalism;3. Theft or larceny; 8. Riot or civil commotion;4. Explosion or earthquake; 9. Contact with bird or animal; or5. Windstorm; 10. Breakage of glass.

If breakage of glass is caused by a collision or if loss is caused by contact with a bird or animal, you may electto have it considered a loss caused by collision.

TRANSPOR- In addition, we will pay up to $20 per day, to a maximum of $600 for transportation expenses incurred byTATION you. This applies only in the event of the total theft of your covered auto. We will pay only transportation EXPENSES expenses incurred during the period:

1. Beginning 48 hours after the theft; and 2. Ending when your covered auto is returned to use or we pay for its loss.

EXCLUSIONS We will not pay for:1. Loss to your covered auto while it is:

a. being used to carry persons for a fee; this does not apply to a share-the-expense car pool; orb. being used to carry property for a fee; this does not apply to you or any family member unless the


auto to another for reimbursement of operating expenses only.2. Damage due and confined to:

a. wear and tear;b. freezing;c. mechanical or electrical breakdown or failure; ord. road damage to tires.This exclusion (2.) does not apply if the damage results from the total theft of your covered auto.

3. Loss due to or as a consequence of:a. radioactive contamination;b. discharge of any nuclear weapon (even if accidental);c. war (declared or undeclared);d. civil war;e. insurrection; orf. rebellion or revolution.

4. Loss to stereos, radios, and other sound reproducing equipment. This exclusion (4.) does not apply ifthe equipment is permanently installed in your covered auto.

5. Loss to tapes, records or other devices for use with equipment designed for the reproduction of sound.6. Loss to a camper body or trailer not shown in the Declarations. This exclusion (6.) does not apply to a

camper body or trailer you:a. acquire during the policy period; andb. notify us within thirty days after you become the owner.

7. Loss to any vehicle while used as a temporary substitute for a vehicle you own which is out of normaluse because of its:

a. breakdown;b. repair;c. servicing;d. loss; or e. destruction.

8. When in or upon any trailer, loss to:a. TV antennas;b. awnings or cabanas; or c. equipment designed to create additional living facilities.

9. Loss to any of the following or their accessories:a. citizens band radio;b. two-way mobile radio;c. telephone;d. scanning monitor receiver; ore. any device or instrument used for detection of radar or other speed measuring equipment.This exclusion (9.) does not apply if the equipment is permanently installed in the opening of the dashor console of the auto. This opening must be normally used by the auto manufacturer for the installationof a radio.

10. Loss to any custom furnishings or equipment in or upon any pickup or van. Custom furnishings or equip-ment include but are not limited to:

a. special carpeting and insulation, furniture, bars or television receivers;b. facilities for cooking and sleeping;c. height-extending roofs; or d. custom murals, paintings or other decals or graphics.This exclusion (10.) does not apply if the value of the custom furnishings or equipment has beenreported to us prior to a loss and included in the premium for this coverage.

11. Loss due to or as a consequence of a seizure of your covered auto by federal or state law enforce-ment officers as evidence in a case against you by the Texas Controlled Substances Act or the federalControlled Substances Act if you are convicted in such case.

LIMIT OF Our limit of liability for loss will be the lesser of the:LIABILITY 1. Actual cash value of the stolen or damaged property;

2. Amount necessary to repair or replace the property with other of like kind and quality; or3. Amount stated in the Declarations of this policy.The most we will pay for loss to equipment listed in Exclusion 4. is $1500. Our payment for loss will bereduced by any applicable deductible shown in the Declarations.

At the mutual agreement of you and us, we will not apply the applicable deductible for a glass loss if the glassis repaired rather than replaced.

PAYMENT We may pay for loss in money or repair or replace the damaged or stolen property. We may, at our OF LOSS expense, return any stolen property to:

1. You; or 2. The address shown in this policy.

If we return stolen property we will pay for any damage resulting from the theft. We may keep all or part of theproperty at an agreed or appraised value.

NO BENEFIT This insurance shall not directly or indirectly benefit any carrier or other bailee for hire.TO BAILEEOTHER A. If other insurance also covers the loss we will pay only our share of the loss. Our share is the pro-INSURANCE portion that our limit of liability bears to the total of all applicable limits.

B. For any loss to which Uninsured/Underinsured Motorists Coverage (from this or any other policy) and thiscoverage both apply, you may choose the coverage from which damages will be paid.

You may recover under both coverages, but only if:1. Neither one by itself is sufficient to cover the loss;2. You pay the higher deductible amount (but you do not have to pay both deductibles); and3. You will not recover more than the actual damages.

APPRAISAL If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent appraiser. The two appraisers will select an umpire. The appraisers willstate separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differencesto the umpire. A decision agreed to by any two will be binding. Each party will:

1. Pay its chosen appraiser; and2. Bear the expenses of the appraisal and umpire equally.

We do not waive any of our rights under this policy by agreeing to an appraisal.PART E – DUTIES AFTER AN ACCIDENT OR LOSSGENERAL A. We must be notified promptly of how, when and where the accident or loss happened. Notice should DUTIES also include the names and addresses of any injured persons and of any witnesses. If we show that your

failure to provide notice prejudices our defense, there is no liability coverage under the policy.B. A person seeking any coverage must:

1. Cooperate with us in the investigation, settlement or defense of any claim or suit.2. Promptly send us copies of any notices or legal papers received in connection with the accident or loss.3. Submit, as often as we reasonably require, to physical exams by physicians we select. We will pay for

these exams.4. Authorize us to obtain:

a. medical records which are reasonably related to the injury or damage asserted; andb. other pertinent records.

5. When required by us:a. submit a sworn proof of loss;b. submit to examination under oath.

C. Within 15 days after we receive your written notice of claim, we must:1. acknowledge receipt of the claim.

If our acknowledgment of the claim is not in writing, we will keep a record of the date, method and content of our acknowledgment.

2. begin any investigation of the claim.3. specify the information you must provide in accordance with paragraph B. above.We may request more information, if during the investigation of the claim such additional information is necessary.

D. After we receive the information we request, we must notify you in writing whether the claim will be paid orhas been denied or whether more information is needed:1. within 15 business days; or2. within 30 days if we have reason to believe the loss resulted from arson.

E. If we do not approve payment of your claim or require more time for processing your claim, we must:1. give the reasons for denying your claim, or2. give the reasons we require more time to process your claim. But, we must either approve or deny your

claim within 45 days after our requesting more time.F. In the event of a weather-related catastrophe or major natural disaster, as defined by the Texas Department

of Insurance, the claim-handling deadlines as stated above are extended for an additional 15 days.G. Loss Payment

1. If we notify you that we will pay your claim, or part of your claim, we must pay within 5 business daysafter we notify you.

2. If payment of your claim or part of your claim requires the performance of an act by you, we must paywithin 5 business days after the date you perform the act.

H. Notice of Settlement of Liability Claim1. We will notify you in writing of any initial offer to compromise or settle a claim against you under the

liability section of this policy. We will give you notice within 10 days after the date the offer is made.2. We will notify you in writing of any settlement of a claim against you under the liability section of this

policy. We will give you notice within 30 days after the date of the settlement.ADDITIONAL A person seeking Uninsured/Underinsured Motorists Coverage must also:DUTIES FOR 1. Promptly notify the police if a hit and run driver is involved;UNINSURED/ 2. Promptly send us copies of the legal papers if a suit is brought;UNDERINSURED 3. Take reasonable steps after loss, at our expense, to protect damaged property from further loss; andMOTORISTS 4. Permit us to inspect and appraise the damaged property before its repair or disposal.COVERAGEADDITIONAL A person seeking Coverage for Damage to Your Auto must also:DUTIES FOR 1. Take reasonable steps after loss, to protect your covered auto and its equipment from further loss.COVERAGE We will pay reasonable expenses incurred to do this;FOR DAMAGE 2. Promptly notify the police if your covered auto is stolen; andTO YOUR AUTO 3. Permit us to inspect and appraise the damaged property before its repair or disposal.PART F – GENERAL PROVISIONSBANKRUPTCY Bankruptcy or insolvency of the covered person shall not relieve us of any obligations under this policy.CHANGES A. This policy contains all the agreements between you and us. Its terms may not be changed or waived

except by endorsement issued by us.B. If a change requires a premium adjustment, we will adjust the premium as of the effective date of change in

accordance with rules prescribed by the Texas Department of Insurance or its successor. Changes during thepolicy term that may result in a premium increase or decrease include, but are not limited to, changes in:1. The number, type or use classification of the insured autos;2. Operators using insured autos;3. The place of principal garaging of insured autos;4. Coverage, deductible or limits.

C. If this policy form is revised to provide more coverage without additional premium charge, we will automati-cally provide the additional coverage as of the date the revision is effective.

D. We will compute the premium at the rates in effect on each anniversary date of the policy’s inception datefor a policy written for more than a full year.

LEGAL ACTION A. No legal action may be brought against us until there has been full compliance with all the terms of thisAGAINST US policy. In addition, under Liability Coverage, no legal action may be brought against us until:

1. We agree in writing that the covered person has an obligation to pay; or2. The amount of that obligation has been finally determined by judgment after trial.

B. No person or organization has any right under this policy to bring us into any action to determine the liability ofa covered person.

OUR RIGHT A. If we make a payment under this policy and the person to or for whom payment was made has aTO RECOVER right to recover damages from another we shall be subrogated to that right. That person shall do:PAYMENT 1. Whatever is necessary to enable us to exercise our rights; and

2. Nothing after loss to prejudice them.(A release of the insurer of an underinsured motor vehicle does not prejudice our rights.)However, our rights in this paragraph do not apply under Part D, against any person using your coveredauto with a reasonable belief that person is entitled to do so.

B. If we make a payment under this policy and the person to or for whom payment is made recovers damagesfrom another, that person shall: 1. Hold in trust for us the proceeds of the recovery; and2. Reimburse us to the extent of our payment. (However, we may not claim the amount recovered from an

insurer of any underinsured motor vehicle.)POLICY A. This policy applies only to accidents and losses which occur:PERIOD AND 1. During the policy period as shown in the Declarations; and TERRITORY 2. Within the policy territory.

B. The policy territory is:1. The United States of America, its territories or possessions;2. Puerto Rico; or3. Canada.This policy also applies to loss to, or accidents involving, your covered auto while being transportedbetween their ports.

TERMINATION A. Cancellation. This policy may be cancelled during the policy periods as follows:1. The named insured shown in the Declarations may cancel by:

a. returning this policy to us; orb. giving us advance written notice of the date cancellation is to take effect.

2. We may cancel by mailing at least 10 days notice to the named insured shown in the Declarations atthe address shown in this policy.

3. After this policy is in effect for 60 days or if this is a renewal or continuation policy, we will cancel only:a. if you submit a fraudulent claim; orb. for nonpayment of premium; orc. if your driver’s license or motor vehicle registration or that of:

(1) any driver who lives with you; or(2) any driver who customarily uses your covered auto

has been suspended or revoked. However, we will not cancel if you consent to the attachment of anendorsement eliminating coverage when your covered auto is being operated by the driver whoselicense has been suspended or revoked.

4. We may not cancel this policy based solely on the fact that you are an elected official.B. Non-renewal. If we decide not to renew or continue this policy, we will mail notice to the named insured

shown in the Declarations at the address shown in this policy. Notice will be mailed at least 30 days beforethe end of the policy period. If the policy period is other than 1 year, we will have the right not to renew orcontinue it only at each anniversary of its original effective date. We will not refuse to renew because of acovered person’s age. We may not refuse to renew this policy based solely on the fact that you are anelected official.

C. Automatic Termination. If, at any time, you obtain other insurance on your covered auto, any similar in-surance provided by this policy will terminate as to that auto on the effective date of the other insurance.If we offer to renew or continue and you or your representative do not accept, this policy will automaticallyterminate at the end of the current policy period. Failure to pay the required renewal or continuation premium when due shall mean that you have not accepted our offer.

D. Other Termination Provisions.1. We may deliver any notice instead of mailing it. Proof of mailing of any notice shall be sufficient proof of

notice.2. If this policy is cancelled, you may be entitled to a premium refund. If so, we will send you the refund

promptly. The premium refund, if any, will be computed pro rata, subject to the policy minimum premi-um. However, making or offering to make the refund is not a condition of cancellation.

3. The effective date of cancellation stated in the notice shall become the end of the policy period.4. Any cancellation or restriction of coverage made without your consent will be of no effect, except as

a. provided for in this Termination provision under:

(1) Cancellation;(2) Non-renewal; or(3) Automatic Termination; or

b. required by the Texas Department of Insurance.TRANSFER A. Your rights and duties under this policy may not be assigned without our written consent. However, if aOF YOUR named insured shown in the Declarations dies, coverage will be provided for:INTEREST IN 1. The surviving spouse if resident in the same household at the time of death. Coverage applies to the THIS POLICY spouse as if a named insured shown in the Declarations.

2. The legal representative of the deceased person as if a named insured shown in the Declarations. Thisapplies only with respect to the representative’s legal responsibility to maintain or use your coveredauto.

B. Coverage will be provided until the end of the policy period.NOTE: Refer to Medical Payments and/or Personal Injury Protection Coverages for Assignment of Benefits.

TWO OR If this policy and any other auto insurance policy issued to you by us apply to the same accident, theMORE AUTO maximum limit of our liability under all the policies shall not exceed the highest applicable limit of liabilityPOLICIES under one policy.

SPECIAL PROVISIONSThis Company is licensed to operate under Chapter 912, Texas Insurance Code, and such statutes shall apply to and forma part of this policy the same as if written or printed upon, attached or appended hereto.This policy is issued subject to the constitution and bylaws and all amendments thereto of the company, which shall form a part ofthis policy.MUTUALS – MEMBERSHIP AND VOTING NOTICE – The insured is notified that by virtue of this policy, he is a member of theOld American County Mutual Fire Insurance Company of Dallas, Texas, and is entitled to vote either in person or by proxy at anyand all meetings of said Company. The Annual Meetings are held in its Home Office in Dallas, Texas, on the second Tuesday ofMarch in each year, at 9:00 o’clock A.M.MUTUALS – PARTICIPATION CLAUSE WITHOUT CONTINGENT LIABILITY – No Contingent Liability: This policy is non-assess-able. The policyholder is a member of the Company and shall participate, to the extent and upon the conditions fixed and deter-mined by the Board of Directors in accordance with the provisions of law, in the distribution of dividends so fixed and determined.

In Witness Whereof, the company has caused this policy to be executed and attested.

President Secretary

The following endorsements apply only if indicated on the Declarations page.

523C. RENTAL REIMBURSEMENT COVERAGEThe provisions and exclusions that apply to Coverage For Damage To Your Auto also apply to this endorsement except as changedby this endorsement. No deductible applies to this coverage.When there is a loss to your covered auto described in the Declarations for which a specific premium charge indicates that RentalReimbursement Coverage is afforded:

We will reimburse you for expenses you incur to rent a substitute auto. We will pay up to the maximum of the limits describedin the Declarations. This coverage applies only if:1. Your covered auto is withdrawn from use for more than 24 hours, and2. The loss to your covered auto is covered under Coverage For Damage To Your Auto of this policy.When there is a total theft of the auto, the limit of $20 per day (maximum of $600) provided under Coverage For Damage ToYour Auto will be supplemented to the extent the limits in the Declarations exceed that $20 per day limit.Our payment will be limited to that period of time reasonably required to repair or replace the auto.

524A. TOWING AND LABOR COSTS COVERAGEWe will pay towing and labor costs incurred each time your covered auto is disabled, up to the amount shown in the Declarationsas applicable to that vehicle. We will only pay for labor performed at the place of disablement.This coverage applies upon to your covered auto for which a premium charge is shown in the Declarations for Towing and LaborCosts Coverage.

550A. MEXICO COVERAGE – BROAD

The coverages for which premiums are charged in the schedule of this endorsement are extended to accidents occurring in Mexicowithin 25 miles of the United States border.The extended coverages afforded by this endorsement apply only to your covered auto listed in the schedule.Additional ExclusionsWe do not provide any coverage:

1. if your covered auto is not principally garaged and used in the United States; and2. to any covered person who does not live in the United States.

Special Conditions1. Other Insurance. The insurance we provide by this endorsement will be excess over any other collectible insurance.2. Losses Payable Under Coverage for Damage to Your Auto. We will pay losses under Coverage for Damage to Your Auto

in the United States, not in Mexico. If your covered auto must be repaired in Mexico in order to be driven, we will not paymore than the actual cash value of such loss at the nearest United States point where the repairs can be made.

WARNINGREAD THIS ENDORSEMENT CAREFULLY!

Auto accidents in Mexico are subject to the laws of Mexico only—NOT the laws of the United States of America. Unlikethe United States, the Republic of Mexico considers an auto accident a CRIMINAL OFFENSE as well as a civil matter.In some cases, the coverage under this endorsement may NOT be recognized by Mexican authorities and the compa-ny may not be allowed to implement this coverage at all in Mexico. You should consider purchasing auto coverage froma licensed Mexican Insurance Company before driving into Mexico.This endorsement does not apply to trips into Mexico that exceed 25 miles from the boundary of the United States ofAmerica.

OACM.PhysDam.001 – PHYSICAL DAMAGE ENDORSEMENTThe parties agree to the following amendment to the policy:The Limit of Liability provision contained in Part D – Coverage for Damage to Your Auto of this policy is deleted and replaced bythe following:PART D – COVERAGE FOR DAMAGE TO YOUR AUTOLIMIT OF LIABILITYOur limit of liability for loss will be the lesser of the following:

1. Actual cash value of the stolen or damaged property, at the time of the loss. An adjustment for depreciation and physicalcondition will be made in determining the actual cash value in the event of a total loss;

2. the amount necessary to restore (through repair and/or replacement) the property to its pre-loss condition with other prop-erty of like kind and quality;

3. the amount you paid for the vehicle in the event of a total loss; or4. the amount stated in the Declarations of this policy.

All claims submitted under Part D – Coverage for Damage to Your Auto will be subject to any applicable deductible shown in theDeclarations and reduced by any salvage value if you retain the salvage.Custom or additional equipment is not covered under Part D – Coverage for Damage to Your Auto unless you have reported thevalue to us prior to the loss and paid a premium for the custom or additional equipment as shown in the Declarations Page. Diminution in Value is not covered under Part D – Coverage for Damage to Your Auto.If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment. At the mutual agreement of you and us, we will not apply the applicable deductible for a glass loss if the glass is repaired ratherthan replaced. The following Definitions are added as applied to this endorsement:DEFINITIONS

1. “Loss” means sudden, direct and accidental damage.2. “Total Loss” means a loss which, in our judgment, is not economically repairable, and includes actual loss or disappear-

ance of your auto. 3. “Custom or additional equipment” means any equipment which was not installed at the factory. 4. “Diminution in Value” means the reduction in market or resale value that results from a loss after the necessary repairs

are made to the vehicle.5. “Betterment” means an improvement that results in greater value than before the loss occurred.

OACM.YCA.002a – NEWLY ACQUIRED AUTOMOBILE ENDORSEMENTThe parties agree to the following amendment to the policy:Definition G of this policy is deleted and replaced by the following:DEFINITIONSG. 1. “Your covered auto” means:

a. Any vehicle shown in the Declarations.b. A “newly acquired auto”.c. Any “trailer” you own.d. Any auto or trailer you do not own while used as a temporary substitute for any other vehicle described in this defini-

tion which is out of normal use because of its:1. breakdown;2. repair;3. servicing;4. loss; or5. destruction

This provision (G.1.d.) does not apply to Part D – Coverage for Damage to Your Auto of this policy.G. 2. “Newly acquired auto”.

a. “Newly acquired auto” means a private passenger auto, pickup, van or sport utility vehicle designed for operation prin-cipally upon public roads that you become the owner of during the policy period and that:1. has a gross vehicle weight (as determined by the manufacturer’s specifications) of 25,000 lbs. or less; and2. is not used for the delivery or transportation of goods, materials or supplies other than samples, unless:

a. the delivery of goods, materials or supplies is not the primary usage of the vehicle; orb. it is used for farming or ranching

b. Coverage for a newly acquired auto is subject to the following conditions:1. For any coverage provided in this policy except Part D – Coverage for Damage to Your Auto, a newly acquired

auto will have the broadest coverage we now provide for any auto shown in the Declarations. Coverage will begin:a. On the date you become the owner if:

1. your newly acquired auto is in addition to the autos shown in the Declarations; and2. you ask us to add the newly acquired auto to this policy within 20 days after you become the owner; or

b. On the date you become the owner if it replaces an auto shown on your Declarations Page. 2. For coverage provided under Part D – Coverage for Damage to Your Auto, a newly acquired auto will have the

same coverage as the auto it replaces, including the applicable deductible. The applicable deductible will be eitherthe amount shown in the Declarations or $1,000.00, whichever is less. An insured must notify the insurer of areplacement vehicle on or before:a. The 20th day after the date on which the insured becomes the owner of the vehicle; or b. A later date specified by the policy, only if the insured wishes to add coverage for damage to the vehicle; or

continue existing coverage for damage to the vehicle after the period prescribed in 2.a. and 2.b. expire. c. If you do not notify us within 20 days after you become the owner, coverage you ask us to add to the newly

acquired auto will begin at the time you ask us to provide the coverage. 3. For Part D – Coverage for Damage to Your Auto, if the newly acquired auto is in addition to any vehicle shown

on your Declarations page:a. Coverage will apply when you become the owner of a newly acquired auto if an auto shown in the

Declarations has Part D – Coverage for Damage to Your Auto and you ask us to provide Part D – Coveragefor Damage to Your Auto for the newly acquired auto within 20 days after you become the owner.

b. Coverage will apply when you become the owner if no auto shown in the Declarations has Part D – Coveragefor Damage to Your Auto and you ask us to provide Part D – Coverage for Damage to Your Auto within 20 daysafter you become the owner.

c. Coverage will apply at the time you ask us to provide Part D – Coverage for Damage to Your Auto if neither ofthe conditions in 3.a. or b. above has been met and we agree to add this coverage for this auto.

The following Definition is added as applied to this endorsement:DEFINITION“Owner” means the person who:

a. holds legal title to the auto or trailer;b. has legal possession of an auto or trailer subject to a lien or security agreement; orc. has legal possession of a private passenger type auto or pickup or van that is leased or rented to that person under a writ-

ten agreement for a continuous period of at least six months.

OACM.AuthDriv.003a – AUTHORIZED DRIVER ENDORSEMENTThe parties agree to the following amendment to the policy:Part D – Coverage for Damage to Your Auto of this policy is amended by adding the following language as Part C to the InsuringAgreement provision:PART D – COVERAGE FOR DAMAGE TO YOUR AUTOINSURING AGREEMENTC. For coverage to exist under Part D – Coverage for Damage to Your Auto, your covered auto must be operated by or in the

control of an authorized driver at the time of the loss. As used in this Part, “authorized driver” shall mean:a. you; orb. any other person listed in the Declarations or added by endorsement during the policy term prior to loss. As used in this Part, “control” shall mean the direct and immediate pre-loss care and custody of your covered auto.

OACM.Storage.004 – STORAGE ENDORSEMENTThe parties agree to the following amendment to the policy:The following general duty is added to Part E – Duties after an Accident or Loss:PART E – DUTIES AFTER AN ACCIDENT OR LOSSGENERAL DUTIESAnyone seeking coverage under this policy must authorize us to move the damaged vehicle to a storage facility of our choice atour expense.

OACM.DelFee.005 – DELIVERY OF PERSONS AND PROPERTYFOR A FEE ENDORSEMENT

The parties agree to the following amendment to the policy:Exclusion A.5 of Part A Liability Coverage of this policy is deleted and replaced by the following:PART A – LIABILITY COVERAGEEXCLUSIONSA. We do not provide Liability Coverage for any person:

5. For that person’s liability arising out of the ownership or operation of a vehicle while it is:a. being used to carry persons for a fee; this does not apply to a share-the-expense car pool.b. being used to carry property for a fee or any compensation, including but not limited to delivery of goods, either on a

wholesale or retail basis, such as food, publications, money, or flowers.c. rented or leased to another or available in any way for public hire; this does not apply if you or any family member

lends your covered auto to another in exchange for reimbursement of operating expenses only.Exclusion 1 of Part D – Coverage for Damage to Your Auto of this policy is deleted and replaced by the following:PART D – COVERAGE FOR DAMAGE TO YOUR AUTOEXCLUSIONSWe will not pay for:

1. Loss to your covered auto while it is:a. being used to carry persons for a fee; this does not apply to a share-the-expense car pool.b. being used to carry property for a fee or any compensation, including but not limited to delivery of goods, either on a

wholesale or retail basis, such as food, publications, money, or flowers.c. rented or leased to another or available in any way for public hire; this does not apply if you or any family member

lends your covered auto to another in exchange for reimbursement of operating expenses only.

OACM.ContLiab.006 – CONTRACTUAL LIABILITY EXCLUSION ENDORSEMENTThe parties agree to the following amendment to the policy:The following exclusion is added to Part A – Liability Coverage:PART A – LIABILITY COVERAGEEXCLUSIONSWe do not provide Liability Coverage for any person for bodily injury or property damage assumed by or imposed on a coveredperson under any agreement, contract or bailment.

OACM.AutoTerm.007 – AUTOMATIC TERMINATION ENDORSEMENTThe parties agree to the following amendment to the policy:Part F – General Provisions is revised by adding the following language to C. Automatic Termination:PART F – GENERAL PROVISIONSTERMINATIONC. Automatic Termination

If someone other than you or a family member who is listed in the Declarations becomes the owner of the auto, coverage forthat auto will automatically terminate. The termination will correspond with the time that possession or title is conveyed to thenew owner.

OACM.CrimeIntent.008 – CRIMINAL OR INTENTIONAL ACTS ENDORSEMENTThe parties agree to the following amendments to the policy:The following Exclusion Provision is added to Part F – General Provisions:PART F – GENERAL PROVISIONS GENERAL EXCLUSIONSA. We do not provide any coverage for any person for bodily injury or property damage caused by or sustained:

1. In an incident caused by or at the direction of that person with the intent to injure person or property.2. While in the commission of a felony. 3. While attempting to elude arrest by a law enforcement official.

B. We will not pay for loss to your covered auto for damages sustained:1. Due to or caused by a willful or intentional act by or at the direction of you, a family member or anyone with your express

or implied permission. 2. While in the commission of a felony.3. While attempting to elude arrest by a law enforcement official.

Exclusions B.2. and B.3. of this section apply only while your covered auto is being used by you, a family member, or anyonewith your express or implied permission.

OACM.MisrepFraud.009 – MISREPRESENTATION OR FRAUD ENDORSEMENTThe parties agree to the following amendments to the policy:The following provision is added:PART F – GENERAL PROVISIONS MISREPRESENTATION OR FRAUDThis policy includes the Declarations Page and the amendments. This policy also includes the application and the endorsements.The statements that you made while you were applying for coverage are representations. To determine your premium and eligibility forcoverage under this policy, we relied on the representations that you made when you applied for coverage. If you omitted material factsor made material misrepresentations that are fraudulent, false, misleading or affect the acceptance of the risk by us, we may void thispolicy. We may void this policy if you engaged in fraudulent conduct while applying for coverage under this policy. Even following an accident or loss, we may still void this policy for fraud or where there was a material misrepresentation of fact by youwhile you were applying for any coverage under this policy, or through any notice of change that you gave under this policy. In such acase, we will not be liable for any claims that would otherwise be covered in the absence of the fraud or material misrepresentation. If we are not allowed to void this policy, any first-party claims will be reduced by the amount of any other premium owed to us. Wereserve the right to recover from you any payments made as a result of your fraud. Any statements you made or will make in a notification of change to your policy are also considered representations and are sub-ject to the provisions set out above.

OACM.CP.013c – COVERED PERSON ENDORSEMENTThe parties agree to the following amendment to the policy:In Part A – Liability Coverage, Insuring Agreement B. “Covered person” is deleted and replaced by the following:

PART A – LIABILITY COVERAGEINSURING AGREEMENT

B. “Covered person” as used in this Part means:1. You, for the ownership, maintenance or use of any auto or trailer.2. Any family member or resident of your household who is listed in the Declarations or added by endorsement during

the policy term prior to loss for the ownership, maintenance or use of any auto or trailer.3. A person who is not a family member or resident of your household but is using your covered auto with your express

or implied permission.As used in this Part, “resident” shall mean any person living in your household other than you or a family member.

In Part A – Liability Coverage, Exclusions, the following is added as Exclusion D: PART A – LIABILITY COVERAGEEXCLUSIONS

D. None of the liability coverages afforded by this policy shall apply while any person who is not a covered person is oper-ating your covered auto or any other vehicle.

OACM.OutOfState.016a – RESTRICTED OUT OF STATE COVERAGE ENDORSEMENT

The parties agree to the following amendments to the policy:Part A – Liability Coverage of this policy is amended by deleting and replacing Part A of the Out of State Coverage Provision withthe following:PART A – LIABILITY COVERAGEOUT OF STATE COVERAGE If an auto accident to which this policy applies occurs in any state or province other than the one in which your covered auto isprincipally garaged, we will interpret your policy for that accident as follows:A. If the state or province has:

1. A financial responsibility or similar law specifying limits of liability for bodily injury or property damage higher than the limitshown in the Declarations, your policy will provide the higher specified limit.

2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a vehiclein that state or province, your policy will provide at least the required minimum amounts for bodily injury or property damage asspecified by the state or province.

Part B1 – Medical Payments Coverage, Part B2 – Personal Injury Protection and Part C – Uninsured/Underinsured MotoristsCoverage of this policy are amended by adding the following to each part:PART B1 – MEDICAL PAYMENTS COVERAGEPART B2 – PERSONAL INJURY PROTECTIONPART C – UNINSURED/UNDERINSURED MOTORISTS COVERAGEOUT OF STATE COVERAGEThis coverage shall not be modified by the law of the state where the covered person sustains injury or damage caused by anauto accident.

OACM.Punitive.018 (Rev 2013 01) – EXEMPLARY OR PUNITIVE DAMAGES ENDORSEMENT

The parties agree to the following amendments to the policy: The following exclusions are added: PART A – LIABILITY COVERAGE EXCLUSIONS We do not provide Liability Coverage for any exemplary or punitive damages. PART C – UNINSURED/UNDERINSURED MOTORISTS COVERAGE EXCLUSIONS We do not provide Uninsured/Underinsured Motorists Coverage for any exemplary or punitive damages. The following definition is added as applied to this endorsement:

DEFINITION “Exemplary damages” means any damages awarded as a penalty or by way of punishment but not for compensatory damages.Exemplary damages are neither economic nor noneconomic damages. “Exemplary damages” includes punitive damages.

OACM.RentProp-NOAuto.019 – RESTRICTED RENTED PROPERTY AND NON-OWNED AUTO ENDORSEMENT

The parties agree to the following amendment to the policy:Exclusion A.3 of Part A – Liability Coverage of this policy is deleted and replaced by the following:PART A – LIABILITY COVERAGEEXCLUSIONSA. We do not provide Liability Coverage for any person:

3.I. For damage to property:a. rented to;b. used by; orc. in the care, custody or control of that person.

3.II.This exclusion (A.3.I.) does not apply to damage to a rented residence or rented private garage caused by your coveredauto.

This exclusion does, however, apply to any and all damage to any vehicle you rent, use, or borrow, regardless of cause or fault.

OACM.NoBusiness.020 – NO BUSINESS USE ENDORSEMENT The parties agree to the following amendments to the policy: Exclusion A.7 of Part A - Liability Coverage of this policy is deleted and replaced by the following: PART A - LIABILITY COVERAGE EXCLUSIONS A. We do not provide Liability Coverage for any person:

7. Maintaining or using any vehicle for any business purpose. A business purpose includes but is not limited to: a) transporting persons, equipment or tools of the trade to or from a job site; or, b) using any vehicle while employed or otherwise engaged in any business or occupation, including but not limited to the

following occupations or services: 1) construction, or 2) courier or delivery services, or 3) landscaping, or 4) painting, or 5) carpentry, or 6) masonry, or 7) food services, or 8) janitorial services, or 9) any other trade-type service.

Exclusion A.7.a) does not apply to a share-the-expense car pool. The following exclusion is added to Part D - Coverage for Damage to Your Auto PART D – COVERAGE FOR DAMAGE TO YOUR AUTO EXCLUSIONS We will not pay for: Loss to your covered auto while it is being operated for any business purpose. A business purpose includesbut is not limited to:

a) transporting persons, equipment or tools of the trade to or from a job site; or,

b) using any vehicle while employed or otherwise engaged in any business or occupation, including but not limited to the fol-lowing occupations or services: 1) construction, or 2) courier or delivery services, or 3) landscaping, or 4) painting, or 5) carpentry, or 6) masonry, or 7) food services, or 8) janitorial services, or 9) any other trade-type service.

Paragraph a) of this exclusion does not apply to a share-the-expense car pool.

IMPORTANT NOTICE

NAMED DRIVER POLICY WARNING(Texas Ins. Code §1952.0545)

WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDECOVERAGE FOR INDIVIDUALS RESIDING IN THE INSURED’S

HOUSEHOLD THAT ARE NOT NAMED ON THE POLICY.OACM.NDPW.012014

IMPORTANT NOTICE

NON-RENEWALS FOR NOT-AT-FAULT ACCIDENTSOR CLAIMS

(28 TAC §5.7016)

We may not use any of the following types of accidents or claims as the only reason for refus-ing to renew your personal auto policy:

1. A claim involving damage from a weather-related incident that does not involve a collision(some examples being hail, flood, tornado, winds or hurricanes);

2. an accident or claim involving damage by contact with an animal or a fowl;

3. an accident or claim involving damage caused by flying gravel, missiles or falling objects;however, if you have three of these losses in any 36-month period, we may increase yourdeductible to the higher of $250 or the next available deductible increment higher thanyour present deductible amount, at your renewal date;

4. a claim under towing and labor protection; however, if you have four claims of this type inany 36-month period, we have the option of eliminating this coverage from your policy;

5. any other not-at-fault accident or claim unless there are two or more of these accidents orclaims in any 12-month period.

“Refusal to renew” means our refusal to renew your personal auto policy in the same companywhich originally issued the policy.

To the extent of any possible conflict between this notice and the Texas Administrative Code (28TAC §5.7016), the latter will be controlling.

BRPA Page 1 Ed. 01/31/2013a

CONSUMER BILL OF RIGHTS Personal Automobile Insurance

AVISO: Este documento es un resumen de sus derechoscomo asegurado. Usted tiene el derecho a llamar a su compañía y pedir una copia de estos derechos en español.

What is the Bill of Rights?This Bill of Rights is a summary of your rights and does notbecome a part of your policy. The Texas Department of Insurance(TDI) adopted the Bill of Rights and requires insurance compa-nies to provide you a copy when they issue your policy.Texas law gives you certain rights regarding your personalautomobile insurance. This Bill of Rights identifies your rightsspecified by rule or by state statute, but it does not include allof your rights. Also, some exceptions to the rights are not list-ed here. Legislative or regulatory changes to statutes or rulesmay affect your rights as an insured. If your agent, company,or adjuster tells you that one of these rights does not apply toyou, contact TDI’s Consumer Protection Program at 1-800-252-3439 (512-463-6515 in Austin), by mail at Mail Code 111-1A,P.O. Box 149091, Austin, TX 78714-9091, or by email [email protected]. For a list of the specificlaw(s) and/or rule(s) summarized in each item of this Bill ofRights, or if you have questions or comments, contact the Officeof Public Insurance Counsel (OPIC) at 1-877-611-6742, by mailat 333 Guadalupe, Suite 3-120, Austin, TX 78701, or visit theOPIC website at www.opic.state.tx.us.This Bill of Rights does not address your responsibilities. Yourresponsibilities concerning your insurance can be found in yourpolicy. Failure to meet your obligations may affect your rights.

Getting information from the Department of Insuranceand your insurance company

1. INFORMATION FROM TDI. You have the right to call TDIfree of charge at 1-800-252-3439 or 512-463-6515 inAustin to learn more about:• your rights as an insurance consumer;• the license status of an insurance company or agent;• the financial condition of an insurance company;• the complaint ratio and type of consumer complaints

filed against an insurance company;• use of credit information by insurance companies,

including which insurance companies use it andaccess to each company’s credit scoring model;

• an insurance company’s rates filed with the state;• an insurance company’s underwriting guidelines (sub-

ject to exemptions in the Public Information Act, alsoknown as the Open Records Act); and

• other consumer concerns.You can also find some of this information on the TDI web-site at www.tdi.texas.gov.At www.helpinsure.com, Texans can find more detailedinformation on their current and prospective insurers. TDI,in conjunction with OPIC, maintains this website to helpTexans shop for residential property insurance and per-sonal automobile insurance. For companies writing inTexas that are in the top 25 company groups nationally,the site also includes:

• a list of insurers by county and/or ZIP code;• detailed contact information for each insurer;• sample rates and a brief history of increases and/or

decreases in the rates;• policy form comparisons;• a list of policy forms, exclusions, endorsements, and

discounts offered by each insurer; and• non-confidential disciplinary actions against each

insurer.2. INFORMATION FROM YOUR INSURANCE COMPANY.

You have the right to a toll-free number to call your insur-ance company free of charge with questions or com-plaints. You can find this number on a notice accompany-ing your policy. This requirement does not apply to smallinsurance companies.What you should know before you buy insurance

3. PROHIBITED STATEMENTS. Your insurance companyor agent is prohibited from making false, misleading, ordeceptive statements to you relating to insurance.

4. EXCESS LIMITS. An insurer or agent cannot require youto purchase liability limits greater than the minimum limitsrequired by law or require you to purchase other types ofcoverage as a condition of offering or renewing insurance.The current minimum limits are 30/60/25, which referencesthe maximum amount the policy will pay for each accident:$30,000 per person for a bodily injury claim /$60,000 for allbodily injury claims combined /$25,000 for property dam-age claims per accident.NOTE: Texas law requires that automobile insurance poli-cies include personal injury protection (PIP) and uninsuredmotorist protection (UM/UIM) unless you reject these cover-ages in writing. Also, as a condition of your automobile loan,your lender may require you to purchase other types of cov-erages, such as collision or comprehensive coverage, to payfor any damage to your vehicle.

5. CREDIT INFORMATION. An insurance company cannotdeny you insurance solely on the basis of credit informa-tion. Insurers who use credit information must also con-sider other underwriting factors independent of creditinformation when deciding whether to offer coverage. (Foradditional information see section of this Bill of Rightstitled What you should know about insurance companies’use of credit information.)

6. SAFETY NET. You have the right to buy minimum liability,personal injury protection, and uninsured motorist insur-ance through the Texas Automobile Insurance PlanAssociation, also known as TAIPA, if you have beendenied coverage by two insurance companies.

7. PAYMENT PLANS. You have the right to pay your auto-mobile insurance premium in installments. Insurancecompanies will charge a fee for each installment.

8. ELECTRONIC PAYMENTS. If you authorize your insurerto withdraw your premium payments directly from yourfinancial institution, your insurer cannot increase theamount withdrawn unless:


• the insurer notifies you by U.S. mail of the increase inpremium at least 30 days prior to its effective date; and

• you do not notify the insurer that you object to theincrease in the amount to be withdrawn at least fivedays prior to the increase.

The notice provided by the insurer must include a toll-freenumber, a mailing address and an email address (if applica-ble), through which you can contact the insurer to object tothe increase.NOTE: This does not apply to premium increases specifi-cally scheduled in the original policy, to increases based onpolicy changes you request, or to an increase that is lessthan $10 or 10 percent of the previous month’s payment.

9. NOTICE OF REDUCED COVERAGE. If an insurer usesan endorsement to reduce the amount of coverage pro-vided by your policy, the insurer must give you a writtenexplanation of the change made by the endorsement. Theinsurer must provide the explanation not later than the30th day before the effective date of the new or renewalpolicy. An insurance company cannot reduce coverageduring the policy period unless you request the change. Ifyou request the change, the company is not required toprovide notice.

10. EXPLANATION OF DENIAL. Upon request, you have theright to be told in writing why you have been denied coverage. The written statement must fully explain thedecision, including the precise incidents, circumstances,or risk factors that disqualified you. It must also state thesources of information used.NOTE: The obligation to provide a written explanationapplies to insurance companies directly. An independentagent does not have a specific duty to quote the lowestpossible rate to a consumer or to provide a written state-ment explaning why the agent did not offer the consumerthe lowest possible rate.

11. RATE DIFFERENTIAL WITHIN A COUNTY. If an insur-ance company subdivides a county for the purpose ofcharging different rates for each subdivision, the differ-ence between the lowest and the highest rate cannotexceed 15 percent unless actuarially justified.

12. RIGHT TO PRIVACY.You have the right to prevent an insur-ance company, agent, adjuster or financial institution fromdisclosing your personal financial information to companiesthat are not affiliated with the insurance company or financialinstitution. Some examples are income, social security num-ber, credit history, and premium payment history.If you apply for a policy, the insurance company or finan-cial institution must notify you if it intends to share finan-cial information about you and give you at least 30 days torefuse. This refusal is called “opting out.” If you buy a pol-icy, the insurance company or financial institution must tellyou what information it collects about you and whether itintends to share any of the information, and give you atleast 30 days to opt out. Agents and adjusters who intendto share your information with anyone other than theinsurance company or financial institution must give yousimilar notices.You can opt out at any time. Your decision to opt outremains in effect unless you revoke it.These protections do not apply to information:

• publicly available elsewhere;• insurance companies or financial institutions are

required by law to disclose; or• insurance companies or financial institutions must

share in order to conduct ordinary business activities.What you should know about cancellation and nonrenewalCancellation means that before the end of the policy periodthe insurance company:

• terminates the policy;• reduces or restricts coverage under the policy; or• refuses to provide additional coverage to which you

are entitled under the policy.Refusal to renew and nonrenewal mean the policy termi-nates at the end of the policy period.The policy period is shown on the declarations page at thefront of your policy.13. LIMITATION ON CANCELLATION.After your initial policy

with your company has been in effect for 60 days, thatinsurance company cannot cancel your policy unless:• you don’t pay your premium when due;• you file a fraudulent claim;• your driver’s license or car registration is revoked or

suspended;• the driver’s license of any household resident or

person who customarily drives a covered auto is sus-pended or revoked. If you agree to exclude coverage forthat person, the insurance company cannot cancel yourpolicy for this reason; or

• TDI determines continuation of the policy would resultin violation of insurance laws.

14. NOTICE OF CANCELLATION. To cancel your policy, yourinsurance company must mail notice at least 10 days priorto the effective date of the cancellation. Your policy mayprovide for even greater notice.

15. POLICYHOLDER’S RIGHT TO CANCEL. You have theright to cancel your policy at any time and receive a refundof the remaining premium. The refund will be paid to youunless your premium was financed through a premiumfinance company. In that case, the refund will be paid tothe premium finance company to reduce the amount youowe on your loan.

16. CHANGE IN MARITAL STATUS. If your marital statuschanges, you have the right to continue your insurancecoverage. You have a right to a new policy in your namethat has coverages which most nearly approximate thecoverages of your prior policy, including the same expira-tion date. The insurance company cannot date the newpolicy so that a gap in coverage occurs.

17. NOT-AT-FAULT CLAIMS. Your insurance company cannotrefuse to renew your policy solely because of any of the following types of claims:• claims involving damage from a weather-related inci-

dent that does not involve a collision, like damagefrom hail, wind or flood;


• accidents or claims involving damage by contact withanimals or fowls;

• accidents or claims involving damage caused by fly-ing gravel or flying objects; however, if you have threeof these claims in a three-year period, the insurancecompany may raise your deductible on your nextrenewal date;

• towing and labor claims; however, once you havemade four of these claims in a three-year period, thecompany may eliminate this coverage from your policyon your next renewal date; and

• any other accident or claim that was not your faultunless you have two or more of these claims or acci-dents in a one-year period.

18. USE OF AGE TO NONRENEW. Your insurance companycannot refuse to renew your policy based solely on the ageof any person covered by the policy. This includes placingyou in a higher priced company or requiring a named driverexclusion for a teenager who reaches driving age.

19. USE OF CREDIT INFORMATION TO NONRENEW.An insurance company cannot refuse to renew your policy solely on the basis of credit information. Insurerswho use credit information must also consider otherunderwriting factors independent of credit informationwhen deciding whether to renew coverage. (For addition-al information see the section of this Bill of Rights titledWhat you should know about insurance companies’ use ofcredit information.)

20. LENGTH OF POLICY TERM. If the term of your insurancepolicy is less than one year, your insurance company mustrenew that policy until it has been in effect for one year.Your insurance company may only refuse to renew your pol-icy effective on the anniversary of the policy’s originaleffective date. For instance, if your policy was originallyeffective on January 1, Year 1, the insurance companymust renew your policy to provide coverage until January1, Year 2, and thereafter, may only refuse to renew yourpolicy effective January 1 of any subsequent year.

21. NOTICE OF NONRENEWAL. If the insurance companydoes not mail you notice of nonrenewal at least 30 daysbefore your policy expires, you have the right to requirethe insurance company to renew your policy.

22. EXPLANATION OF CANCELLATION OR NONRENEWAL.Upon request, you have the right to a written explanationof an insurance company’s decision to cancel or non-renew your policy. The written statement must fully explainthe decision, including the precise incidents, circum-stances, or risk factors that disqualified you. It must alsostate the sources of information used.

What you should know when you file a claim23. FAIR TREATMENT. You have the right to be treated fairly

and honestly when you make a claim. If you believe aninsurance company has treated you unfairly, call theDepartment of Insurance at 1-800-252-3439 (512-463-6515 in Austin) or download a complaint form from the TDIwebsite at www.tdi.texas.gov. You can complete a complaintform on-line via the Internet or fax it to TDI at 512-475-1771.

24. SETTLEMENT OFFER. You have the right to reject anysettlement amount, including any unfair valuation, offeredby the insurance company. If you reject a settlement offer,

your options include continuing to negotiate with the insureror pursuing legal remedies, such as mediation, arbitration,or filing a lawsuit.

25. EXPLANATION OF CLAIM DENIAL. Your insurancecompany must tell you in writing why your claim or part ofyour claim was denied.

26. TIME FRAMES FOR CLAIM PROCESSING AND PAY-MENT. When you file a claim on your own policy, you havethe right to have your claim processed and paid promptly.If the insurance company fails to meet required claimsprocessing and payment deadlines, you have the right tocollect 18 percent annual interest and attorney’s fees inaddition to your claim amount.Generally, within 15 calendar days, your insurance com-pany must acknowledge receipt of your claim and requestany additional information reasonably related to yourclaim. Within 15 business days after receipt of allrequested information, the company must approve ordeny your claim in writing. The law allows the insurancecompany to extend this deadline up to 45 days if it notifiesyou that more time is needed and tells you why.After notifying you that your claim is approved, your insur-ance company must pay the claim within five businessdays.If your claim results from a weather-related catastrophe orother major natural disaster as defined by TDI, theseclaims handling deadlines are extended for an additional15 days.

27. CHOICE OF REPAIR SHOP AND REPLACEMENTPARTS. You have the right to choose the repair shop andreplacement parts for your vehicle. An insurance compa-ny may not specify the brand, type, kind, age, vendor, supplier, or condition of parts or products used to repairyour automobile. The insurance company must provideyou notice of the above requirements as follows:• claims submitted by telephone – written notice within

three business days or immediate verbal notice, fol-lowed by written notice within 15 days;

• claims submitted in person – immediate written noticeat the time you present your vehicle to an insurer oran insurance adjuster or other person in connectionwith a claim for damage repair; or

• claims submitted in writing – written notice must be provided within three business days of the insurance company’s receipt of the notice.

28. DEDUCTIBLE RECOVERY. If another person is liable fordamage to your auto and you filed a claim and paid adeductible on your own policy, your insurance companymust make a reasonable and diligent effort to recover thedeductible from that person within twelve months from thedate your claim is paid. If not, your company must:• authorize you, at least 90 days prior to the expiration

of the statute of limitations, to pursue your own collection efforts, or

• refund your deductible.29. NOTICE OF LIABILITY CLAIM SETTLEMENT. Your

insurance company must notify you if it intends to pay aliability claim against your policy. The company must notify


you in writing of an initial offer to compromise or settle aclaim against you no later than the 10th day after the datethe offer is made. The company must notify you in writing ofany settlement of a claim against you no later than the30th day after the date of the settlement.

30. INFORMATION NOT REQUIRED FOR CLAIM PROCESS-ING. You have the right to refuse to provide your insurancecompany with information that does not relate to your claim.In addition, you may refuse to provide your federal incometax records unless your insurer gets a court order or yourclaim involves lost income or a fire loss.

What you should know about prohibited discrimination31. PROTECTED CLASSES. An insurance company cannot

discriminate against you by refusing to insure you; limitingthe amount, extent or kind of coverage available to you;charging you a different rate for the same coverage; orrefusing to renew your policy:• because of race, color, religion, or national origin; or• unless justified by actual or anticipated loss experi-

ence, because of age, gender, marital status, geo-graphic location, or disability or partial disability.

32. UNDERWRITING GUIDELINES. Underwriting guidelinesmay not be unfairly discriminatory and must be based onsound actuarial principles.

33. EQUAL TREATMENT. Unless based on sound actuarialprinciples, an insurance company may not treat you dif-ferently from other individuals of the same class andessentially the same hazard. If you sustain economicdamages as a result of such unfair discrimination, youhave the right to sue that insurance company in TravisCounty District Court.If your suit prevails, you may recover economic damages,court costs and attorney and necessary expert witnessfees. If the court finds the insurance company knowinglyviolated your rights, it may award up to an additional$25,000 per claimant.You must bring the suit on or before the second anniver-sary of the date you were denied insurance or the unfairact occurred or the date you reasonably should have discovered the occurrence of the unfair act. If the courtdetermines your suit was groundless and you brought thelawsuit in bad faith, or brought it for the purposes ofharassment, you will be required to pay the insurancecompany’s court costs and attorney fees.

What you should know about insurance companies’use of credit information

34. REQUIRED DISCLOSURE. If an insurance companyuses credit information to make underwriting or ratingdecisions, the company must provide you a disclosurestatement within 10 days after receiving your completedapplication for insurance.The disclosure indicates whether the insurer will obtainand use your credit information and lists your specificlegal rights, including:• credit information insurance companies cannot use

against you;• how you can get reasonable exceptions that your

insurer is required to make to its use of credit informa-

tion if certain life events, such as divorce, death of aclose family member, or identity theft, hurt your credit;

• the notice* an insurer must send you when making acredit-based decision that harms your ability to get orkeep insurance or requires you to pay a higher premium;and

• how you can dispute credit information and require aninsurer to re-rate your policy if the rate was increasedbecause of inaccurate or unverifiable credit information.

*The notice must include a description of up to four primaryfactors that influenced the action taken by the insurer.Insurers must use the disclosure form (CD-1) adopted by thecommissioner or an equivalent disclosure form filed prior touse with TDI. The CD-1 is available at www.tdi.texas.gov/forms/pcpersonal/pc328crdtds.pdf or by calling 1-800-252-3439. Additional information regarding insurers’ use ofcredit information is available at www.tdi.texas.gov/credit/credit.html.

What you should know about enforcing your rights35. FILING YOUR COMPLAINTS. You have the right to

complain to TDI about any insurance company and/orinsurance matter and to receive a prompt investigationand response to your complaint. To do so, you should:• call TDI’s Consumer Help Line at 1-800-252-3439

(512-463-6515 in Austin) for service in both Englishand Spanish;

• write to the Texas Department of Insurance,Consumer Protection, Mail Code 111-1A, P.O. Box149091, Austin, Texas 78714-9091;

• e-mail TDI at [email protected];• fax your complaint to 512-475-1771;• download or complete a complaint form online from

the TDI website at www.tdi.texas.gov; or• call the TDI Publications/Complaint Form order line at

1-800-599-SHOP (7467), (512-305-7211 in Austin).The order line is available 24 hours a day, seven daysa week.

NOTE: TDI offers interpreter services and publications inalternate formats. Persons needing more information inalternate layouts or languages can call the TDI ConsumerHelp Line listed above.

36. RIGHT TO SUE. If an insurance company violates yourrights, you may be able to sue that company in court,including small claims court, with or without an attorney.

37. BURDEN OF PROOF. If you sue to recover under yourinsurance policy, the insurance company has the burdenof proof as to any application of an exclusion in the policyand any exception to or other avoidance of coverageclaimed by the insurer.

38. REQUESTING NEW RULES. You have the right to ask inwriting that TDI make or change rules on any automobileinsurance issue that concerns you. Send your writtenrequest to: Texas Department of Insurance, Attn:Commissioner (113-2A), P.O. Box 149104, Austin, TX78714-9104.

TEXAS PERSONAL AUTO POLICY

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